On-line shopping services enable customers to purchase goods and/or services from a merchant. When finished goods are purchased, such goods may be delivered from a manufacturing site, warehouse or distribution center to a customer via one or more modes of transportation. Costs associated with the delivery of such goods will depend upon several factors, such as the mode of transportation (truck, boat, airplane, etc.), the delivery route, and the distance traveled of the transporting vehicle(s). Shipping and handling charges related to such delivery costs are typically passed on from the merchant to the customer.
In some cases, the shipping and handling charges may increase the total price of an on-line offer just beyond a potential customer's willingness to pay. Further, a delivery address for a potential customer may be on or close to an upcoming delivery route for an existing order. In such a case, shipping costs for a product ordered from the potential customer would be significantly reduced. This would enable the merchant to offer a lower total price for the product. However, the merchant is unable to predict future delivery addresses and their relationship to upcoming delivery routes. The merchant also has no way to communicate with potential customers, for example, to learn that a customer may be willing to purchase a product if the shipping charges are reduced or waived. Lacking this information, additional sales may be lost, and willing buyers and willing sellers may miss opportunities to consummate sales that would be of mutual benefit.